Forecast: Tourism Consumption of Accommodation Services in Malaysia

The tourism consumption of accommodation services in Malaysia has shown significant fluctuations over the period from 2013 to 2023. The values peaked at 30.63 billion MYR in 2019 before a dramatic decline to 5.27 billion MYR in 2020 due to the COVID-19 pandemic. The market rebounded in the subsequent years, reaching 34.36 billion MYR in 2023. This recovery phase reflects a 23.62% year-on-year increase from 2022 to 2023. Notably, the compound annual growth rate (CAGR) for the recent five-year period stands at 3.1%.

Future trends to watch include the acceleration in growth with the forecasted 2.19% CAGR from 2023 to 2028, indicating steady sector recovery and expansion. Factors influencing this growth include increased international arrivals, government tourism initiatives, and enhanced accommodation services. Efforts to improve the tourism infrastructure and digital innovation in the hospitality industry will be pivotal in sustaining this upward trajectory.